Tax Equalization
07-25-2007, 04:20 PM
#31
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Originally Posted by Daniel Larusso
Everyone here seems to be using the HKG tax rate, however the people at the hub turn meeting said that we would be paying Chinese taxes not HKG. Something on the order of 51% vs. 17% in HKG. Not sure what that does to the numbers, just trying to point out any potential inaccuracies.
07-25-2007, 05:01 PM
#32
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Originally Posted by a300fr8dog
Some have stated how an FDA pilot gets to keep his margin on the foreign earned income exclusion. As fas as I know, this only applies without an equalization package.:
Originally Posted by a300fr8dog
You might have an $82k exclusion. But it does you no good unless you live in a foreign country that has LESS tax liability than the US. So, FedEx "keeping" your margin from $82k just isn't how that works.
The company has come out and ADMITTED that equalization doesn't benefit everyone. They aren't being very forthcoming in telling us exactly who doesn't benefit. Your basic example makes my point that "equalization" generally benefits those in Paris and not those in Hong Kong.
07-25-2007, 05:07 PM
#33
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Originally Posted by FDXLAG
No one really knows what deals Fred has cooked up. We could be paying no taxes in either country and the company can pocket the exclusion.
Did the ALPA lawyers get to see that agreement before we opened the ballots?
Seems to me if we are negotiating an agreement with the company with taxation as a major issue, we should be privvy to the general costs of the taxation package to the company/individuals.
07-25-2007, 06:02 PM
#34
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Originally Posted by 130JDrvr
I realize how it works. Was just just saying that if they give you an extra 6k to cover the taxes on the 12k you got already who pays the taxes on the 6k gross up? 
Kinda like if you drop an egg and it continues to fall half way to the ground does it ever hit the ground? or something like that!
Some humor..
Past...
07-25-2007, 06:48 PM
#35
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Originally Posted by fdx727pilot
Jeez, 1 more time, then I give up. They go at from the bottom line backwards. Given your tax rate, how much extra do they have to give you so that after taxes on the extra benefit, you have enough to pay the basic tax bill for the US and the FDA country.
Was being humorous with this. Guess it wasn't obvious. No worries...
Past....
07-25-2007, 06:57 PM
#36
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Originally Posted by 130JDrvr
. Was just just saying that if they give you an extra 6k to cover the taxes on the 12k you got already who pays the taxes on the 6k gross up? Past...
Similar to when they closed the EWR Base and gave the ones that wanted it a paid move to MEM. While the move package was a good deal because they paid everything, ( house hint trips, realtor commisions, home inspections and complete movement of Household goods) the extra benny was taxed as income. While the company did give me some cash (1 months base salary) to cover the additional taxes) My taxes were higher that year. Called a Gross UP
07-25-2007, 07:02 PM
#37
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Originally Posted by RedeyeAV8r
Actually a good question. I believe YOU will bear the xtra tax burden on the extra 6K the company paid on your behalf. Anything thing you get In your pocket or Paid to a 3rd party on your behalf will be taxed as income you received.
Just lie when the closed EWR and gave the ones that took it a paid move to MEM. While the move package was a good deal because they paid everything, the extra benny was taxed as income. While the company did give me some cash (1 months base salary) to cover the additional taxes)
My taxes were higher that year.
Just lie when the closed EWR and gave the ones that took it a paid move to MEM. While the move package was a good deal because they paid everything, the extra benny was taxed as income. While the company did give me some cash (1 months base salary) to cover the additional taxes)
My taxes were higher that year.
That was my point. They give you another 6k to cover taxes on your extra 12k then your income goes up 6k then they give you another 30% of 6k ($1800) to cover the taxes on that now you owe taxes on 1800 more then they pay you....well, you get the picture....
Past....
07-25-2007, 09:29 PM
#38
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Originally Posted by PastV1
Redeye,
That was my point. They give you another 6k to cover taxes on your extra 12k then your income goes up 6k then they give you another 30% of 6k ($1800) to cover the taxes on that now you owe taxes on 1800 more then they pay you....well, you get the picture....
Past....
That was my point. They give you another 6k to cover taxes on your extra 12k then your income goes up 6k then they give you another 30% of 6k ($1800) to cover the taxes on that now you owe taxes on 1800 more then they pay you....well, you get the picture....
Past....
Thank god I have no intention of bidding either FDA.
07-25-2007, 09:42 PM
#39
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Originally Posted by PastV1
Redeye,
That was my point. They give you another 6k to cover taxes on your extra 12k then your income goes up 6k then they give you another 30% of 6k ($1800) to cover the taxes on that now you owe taxes on 1800 more then they pay you....well, you get the picture....
Past....
That was my point. They give you another 6k to cover taxes on your extra 12k then your income goes up 6k then they give you another 30% of 6k ($1800) to cover the taxes on that now you owe taxes on 1800 more then they pay you....well, you get the picture....
Past....
Of course, I didn't see that in the "more tax equalization" page on PFC. Just standard industry practice.
Last edited by Busboy; 07-25-2007 at 09:47 PM.
07-26-2007, 06:16 AM
#40
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Originally Posted by Busboy
I think when it gets down to paying you the $18 to cover $60...They just give you a "Scooby Snack" and call it even.
Of course, I didn't see that in the "more tax equalization" page on PFC. Just standard industry practice.
Of course, I didn't see that in the "more tax equalization" page on PFC. Just standard industry practice.
More than likely they are going to be able to buy a few years worth of "Scooby Snacks" with what they are saving on our LOA package.
Past...
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